ACCOUNTS and credit cards

Hello again ACCOUNTS advisors – just a quick question today.

Please let me know if your church, charity or non-profit, or others you work with, has a “corporate” credit card, which would need to be an account in ACCOUNTS.

The reason I’m asking is that I know it’s dangerous to have a credit card for the organization, because you can’t require two signatures for expenditures. So, because of that, I’m wondering how common it is.

Based on how common it is, I either will, or will not, include a special data entry window for entering credit card purchases. (Yes, I have definitely decided to add some special data entry windows – I completed one for Write Cheques yesterday, and am currently working on one for Enter Deposits.)

There’s no need to write back if you don’t have credit cards in your organization.

Thank you.

9 thoughts on “ACCOUNTS and credit cards

  1. My church has a corporate credit card. The pastor, assistant pastor and the deacon carry the card. We don’t make any entry in the accounting system related to the credit card until the bill is paid off. If I tried to keep up with the purchases I would lose what little sanity I have left.

    • Thanks, Jeff. So when you go to pay off the card, what does the entry look like? You don’t enter one transaction for each purchase? Do you somehow just summarize the purchases by expense account, and enter that as one transaction?

  2. I think most larger churchers do have Credit Cards with set limits on them.

    The one that is issued that card is responsible for the expendetures on that card.

    They are also reconciled just like a bank rec each month. That way the expendetures are input into the right expense accounts and the credit card paid off monthly to avoid any Interest Charges.
    I know i have totally had to deal with this issue.

    Common I don’t know.

  3. Our church has 2 store credit cards. I track the individual purchases but don’t show them on the reports until they are paid. When I record the payment in the General Funds account I split the payment between expense categories as needed to account for the payment.

  4. Dan, Our congregation does not have a credit card. but my own accounting program for my business that i use i set them up as bank accounts and withdraw for purchases and tranfer for payments.

    • Technically Robert a credit card is a liability. So while what you are doing gets the debits/credits right behind the scenes, it would make more sense to have it be a liability account. (Don’t know whether you can change that now though, I guess it depends on the program.)

  5. Yes, we have two credit cards. They are in individual’s names. Data entry window would be nice, otherwise will have to learn how to use it as regular bank account although there are differences.

    The cards are used for convenience, but many purchases are made by an individual (such as myself) and the bill submitted to be reimbursed. A corporate card’s transferability would save a lot of headache, but it’s vulnerability is too frightening for us to go that way at this time. Cancelling and issuing new would become an issue with staff and “trusted member” situations change.

    We have never used ‘Bills’ (just invoices and cheques) but without special treatment, credit cards would become ‘Bill’ and ‘Pay’. My concern would be distiguishing credit card accounts from chequing accounts. I’m guessing I will be switching procedure to using ‘Bills’.

    About avoiding interest charges: we’ve set up automatic payment with the bank.

Comments are closed.